LIRNEasia’s current cycle of research focuses on how mobile platforms can help improve customer relationship management in utilities. I have been contributing to the current debate on rationalizing the electricity tariffs in Sri Lanka based on the work Partha Mukhopadhyay and I did in relation to the recently concluded SAFIR core course and laying the foundation for disseminating the results of the research project when completed. Many of my interventions have been over electronic media, but here is a summary piece in LBO that is also being published in Sinhala in Ravaya next week. Tariff design must contribute to bring down peak demand by around five percent. This is a policy objective pursued in many countries, especially in light of climate-change concerns.
We at LIRNEasia are seeking to apply nudge principles to how utilities (and governments) communicate with their customers (citizens). Therefore, it was not surprising that this caught my eye when reading about Google’s employee perks: So the candy (M&Ms, plain and peanut; TCHO brand luxury chocolate bars, chewing gum, Life Savers) is in opaque ceramic jars that sport prominent nutritional labels. Healthier snacks (almonds, peanuts, dried kiwi and dried banana chips) are in transparent glass jars. In coolers, sodas are concealed behind translucent glass. A variety of waters and juices are immediately visible.
Alex Pentland of MIT has been working on mobile big data (as are we at LIRNEasia). Here is a snippet of an interview in the NYT: The phone tracks our movements, as well as our calls and texts, so it can reveal a lot about our daily lives. What did you learn about yourself by studying your own cellphone data? That I’m very predictable. We tend to pay attention only to the new things in our lives.
The deputy governor of Uganda’s central bank said that mobile financial services (MFS) have outnumbered the traditional bank account holders in 2012. The MFS transactions have totalled UGX11.7 trillion (USD4.374 billion) in 2012, up from UGX3.75 trillion in 2011.
It is perhaps a sign of their efficacy that think tanks in India have come under the gun, on the ground that they are funded by foreign sources and are therefore “subversive.” Rohini Nilekani, a significant philanthropist in her own right, has made a powerful argument on the contributions made to Indian public policy by think tanks and the questioning of some of these organizations obtaining some of their resources from outside India. The piece in Open on ‘Foreign Funding of NGOs’ with the subtitle ‘Should FDI in India’s thinktank sector worry us?’, has served its purpose by triggering a long-overdue reasoned debate. The author lays out various questions that might warrant their own conference or white paper.
As part of the “Inclusion in the Information Society” project commenced September last year we have been studying how electricity utilities can use the almost universal mobile devices to improve the services provided to consumers. The research is ongoing, but we have not let that stop us from making use of the policy windows that open up. Early this week, the Public Utilities Commission of Sri Lanka announced that it would be accepting comments on a proposed tariff increase from the public. Based on our research, we plan to make submissions. Even before that, when a leading economic analysis program aired by Sirasa TV, asked us to speak on the subject, we gave a taste of what would be coming.
The Federal Communications Commission (FCC) has asked US carriers not to pay more than US$0.02 per minute to their Pakistani counterparts. This decree has been slapped after Pakistan has raised its international termination rate to $0.88 per minute, which the FCC calls anti-competitive. Pakistan’s 14 Long Distance and International (LDI) operators have formed a single international gateway called International Clearing House (ICH) and raised international termination prices in October 2012.
The ITU’s Secretary General appointed the biggest single barrier to broadband in Latin America, the wily Carlos Slim Helu, as the co-chair of the Broadband Commission. He specializes in tying up efforts to regulate his enterprises. Now that the political elites in Mexico have agreed to curb the hegemony of Telmex, his hands will be full and there may be a vacancy in the Broadband Commission. Slim, the world’s richest man, dominates Mexico’s telecommunications market, controlling 70 percent of the country’s mobile market and 80 percent of its fixed phone lines. Televisa, controlled by tycoon Emilio Azcarraga, has about 60 percent of the broadcast market.
Just before WCIT, Hosuk Lee and I did a rush job that looked at the possibility that the ETNO-inspired efforts to extract rents from OTT players such as Facebook may violate GATS commitments. Now the issue has bubbled up on another front: When China and other nations block the websites of U.S. companies but the United States doesn’t respond in kind there’s a strong argument that creates an unfair trade barrier, said Andrew McLaughlin, former White House deputy chief technology officer. He cited the example of Facebook, which is blocked in China, and Renren, a Chinese social networking service colloquially known as the “Facebook of China.
This is so different from the stories coming out about companies bidding low for 4G. In an unusual move, CTU, the Czech telecoms regulator, suspended the country’s spectrum auction because bids were escalating too far beyond the reserve price. CTU set a minimum price of CZK7.4 billion ($377m) for the three frequency bands under the hammer – 800MHz, 1800MHz and 2.6GHz – but overall bidding climbed to CZK20 billion before the regulator decided to pull the plug.
Total Telecom gives details of the licenses that will be issued in Myanmar upon the completion of a three-stage process. Technology neutral is good. How much spectrum per license is not stated. If it is 5 MHz, as the rumor mill says, it is unlikely that the government’s objective of 80 SIMS per 100 people can be achieved. After the 4 April deadline, the Committee said it will reveal the applicants that have qualified for the next phase of the licensing process, stage three, which will decide which two companies will be awarded the licences.
The liberalization process in Myanmar is chugging along, with an arrest or two, bad advice from the ITU Regional Office and so on. Hope things will get better. In a poor country like Myanmar, it is hard for grassroots people to get a cell phone. The price has dropped to 150,000 kyat but there are just 1.24 million mobile phones in a country with a population of over 60 million.
Smith v Maryland was a 1979 US case that permitted relatively easy access to phone records. Fixed phone records, because that’s all there was, back then. Mobile phone records yield a lot more information. But US law enforcement has been using the old rules to get the call records. But that may be about to change, at least in Texas.
The Economist has an interesting discussion of several academic papers addressing aspects of the question. Shane Greenstein of Northwestern University and Ryan McDevitt of the University of Rochester calculated the consumer surplus generated by the spread of broadband access (which ought to include the surplus generated by internet services, since that is why consumers pay for broadband). They did so by constructing a demand curve. Say that in 1999 a person pays $20 a month for internet access. By 2006 the spread of broadband has lowered the real price to $17.
Having just finished teaching a course for regulators from five South Asian nations, this para from Pratap Bhanu Mehta’s column on state capacity in India resonated with me. The second black hole of the state is regulatory certainty. The biggest regression over UPA 2 was that it continued to multiply regulators, while at the same time moving away from principled regulation. It got into trouble in sector after sector because it could not stick to regulatory frameworks with credibility; even in PPPs, it was amenable to arbitrary discretion. This also created openings where other institutions like courts could compound uncertainties.
I have given versions of this lecture in many forms at SAFIR over the years. The difference this time was that it was the foundation for a series of units based on the research on customer-relations management conducted across Bangladesh, India and Sri Lanka by LIRNEasia and presented by Helani Galpaya and Rajkiran Bilolikar. Their slidesets will be put up shortly. Mine are here.